The Competition Council authorized the first economic concentration operation under a simplified procedure, according to the new merger regulation. Conglomerate-type mergers will now be less painful for Moldovan businesses.
The purchasers taking control of Zentrum are shareholders of ACVILIN Group, a group of companies operating in the following areas: import and distribution of tobacco products, wholesale trade in food and non-food products, construction, rent and operation of real estate.
The economic concentration notification was approved by the antimonopoly authority, which considered the transaction acceptable for the competitive environment. The parties involved operate in different markets, without horizontal and vertical overlap, which gives the transaction the character of conglomerate concentration. The new regulation immediately classifies them as permissible without lengthy deliberations as to what effects they may have on competition in a particular market.
The categories of admissible concentrations under the simplified procedure can be varied depending on the type of control being acquired. They are also required to be notified to the Competition Council, but are not as thoroughly informative and are time-consuming, which can take up to six months. As a transposition of European regulations and procedures to Moldovan soil, the labor-intensive nature of this process can make it much easier on the wallets of merging business partners.
The fee for reviewing the notification on economic concentration is charged at the rate of 0.1% of the total turnover realized jointly on the territory of Moldova by the involved enterprises. It is calculated on the basis of the total turnover for the year preceding the notification of economic concentration, but may not exceed 150 thousand lei.
